u/EfficiencyMaterial51 ·
Reddit — r/options
· April 10, 2026 at 21:42
· ⬆ 13 pts
· 💬 24 comments
| View on Reddit ↗
AI Summary
Summary
Dominant theme: Caution when trading high IV stocks, emphasizing the need to analyze IV rank/history rather than just absolute IV.
Key strategy discussed: The risks and potential pitfalls of selling strangles on high IV stocks, using TSLA as a primary example.
Notable consensus: Strong agreement that blindly selling strangles on high IV names is dangerous and requires rigorous backtesting via simulation.
Score13
Comments24
▶ Full Post Text
[+5] u/Youngutz2026: do you have Trader Work Station platform (interactive brokers platform)? First you need to compare the IV on the monthly contracts in comparison to back months, and the past year or so to determine what is high right now. Some things like the minner stock, naturally trade at high IVs to start with, so vol crush may not happen if your legit no in that instruments high IV range. Also selling strangles on naturally high IV stocks could be the end of your days, thats some crazy move.
I was doing strangle strategies on the passive nomads sim using TSLA, and when the price rallied, you got smoked, and rolling them to following contracts was a waste of time, would of been better just selling the PUT side the entire time. I would test it first on a simulator like that, which can play 5Y of historic chart over a coffee as you sling your monthly contracts and so on, to see what really can unfold before you just short strangle high IV stocks.
The commenter experienced significant losses selling strangles on TSLA when the price rallied sharply, noting rolling was ineffective. This demonstrates that the high IV in a stock like TSLA does not guarantee a profitable vol crush and can lead to dangerous, one-sided losses. Selling strangles on naturally high-IV, trending stocks like TSLA is a high-risk strategy that should be avoided or extensively simulated first. High IV can persist or expand further during a strong directional move, leading to unlimited loss on one side of the strangle.
This Reddit post, published April 10, 2026,
features r/options community
discussing TSLA.
1 trade idea extracted by AI with direction and confidence scoring.